Integral Ad Science Holding Corp. Q1 2023 Earnings Call

Good day and thank you for standing by welcome to the Ias 2023 first quarter financial results Conference call at this time all.

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I would now like to hand, the conference over to your Speaker today, Jonathan Schaffer V. P of Investor Relations with I S. Please go ahead.

Thank you good afternoon, and welcome to the I asked 2023 first quarter financial results Conference call I'm joined today by at least a Schneider CEO and Thomas <unk> CFO .

Before we begin please note that today's call and prepared remarks contain forward looking statements. We refer you to the company's filings with the SEC posted on our Investor Relations site at investors <unk> integral AD dot com for more details about important risks and uncertainties that could cause actual results to differ materially from our expectations.

We will also refer to non-GAAP measures on today's call.

Reconciliation of non-GAAP measures to the most directly comparable GAAP measures is contained in today's earnings release available on our Investor Relations site.

All financial comparisons unless noted otherwise are based on the prior year period.

So with these formalities out of the way I'd now like to turn the call over to our CEO Lisa at Schneider, Lisa you may begin.

Thanks, Jonathan and welcome everyone to our 2023 first quarter earnings call, we accelerated our business momentum in the first quarter as demand for our mission critical products increased results exceeded our prior guidance for both revenue and adjusted EBITDA. In addition.

We are raising our financial outlook for the full year.

Revenue increased 19% to $106 $1 million in the first quarter ahead of our forecast of $102 million to $104 million, we benefited from strong seasonal demand for marketer campaigns in support of March madness tax preparation.

And new content releases across our streaming partners.

In addition, recent new business wins contributed to performance in the period adjusted.

<unk> EBITDA reached $34 $1 million at a 32% margin. We also achieved net income profitability for the fifth straight quarter.

<unk> is a customer obsessed global technology company.

We are launching innovative and scalable products at high velocity and we continue to invest in engineering and data science talent.

Science is in our name and we are leading with the most advanced AI and ml technologies.

Everything we build is global scalable and repeatable.

A great example of this is the rollout of our total media quality <unk> solution, which delivers comprehensive analysis of content across major platforms in over 90 languages, our partnership with Tic Toc ramped up in the first quarter driven by marketer adoption of our.

And to end measurement Solutions Act.

Active postpaid campaigns were up 33% in the first quarter compared to the fourth quarter of 2022.

We currently operate in seven markets and three languages with Tic Toc, we are expanding rapidly into over 30, new markets over the next several weeks well ahead of our prior expectation of an additional 20 markets by year end.

Earlier, this week Ias announced that its brand safety and suitability reporting on Youtube will now be aligned to the global Alliance for responsible media work arm framework as a result, Ias will offer more granular reporting for campaigns on Youtube.

With meta we're excited to continue our partnership and value their commitment to implementing suitability controls and verifications for feed.

We look forward to the expansion in feed verification to all badge partners later this year.

Last quarter, we announced our expansion into third party brand safety and suitability measurement in Twitters wide feed in the U S. We.

We look forward to expanding our capabilities with Twitter globally into new markets, including Australia, the UK and Canada.

We are investing in ease of use and activation of our programmatic solutions. We are enhancing the customer experience via superior user interface increased functionality and expanded reporting capabilities.

During the first quarter, we integrated our quality sync pre bid product into DSP is including Yahoo, and medium app joining other major DSP.

Quality sink helps marketers optimize media spend and campaign outcomes by reaching higher quality impressions. In addition, strong adoption of context control continues to fuel our programmatic growth.

We're also developing attention metrics to help marketers better optimize their media spend and achieve targeted outcomes. While building a framework of strategic partners unique strengths will further enhance our product offerings.

This week Ias announced a strategic partnership with U K based lumen research a global attention technology company specializing in cutting edge eye tracking solutions by combining ISS attention capabilities and actionable data with Lumens eye tracking expertise.

Our customers will have an even more powerful way to track, which impressions have captured attention and are likely to drive the business results.

We are also actively participating in the iab working groups and with the media rating council or MRC on the ongoing development of expanded standards in this area.

In our recent white paper, taking action on attention, we analyze millions of advertising data signals refined by machine learning models. The report concluded that comprehensive media quality measurement and optimization solutions that leverage visibility the surrounding.

AD environment and add interactions signals are core to driving attention.

Yes currently provides a customer port in our signal UI that helps marketers understand these three components across their programmatic media spend.

We are building on our leadership in AD verification in CTV.

We believe we have the most robust and forward thinking product portfolio as well as global breadth and depth across all of the major CTV AD supported platforms by combining Ias and public data, we provide marketers with transparency on where their ads are running in programmatic.

CTV Publica was recently named Best video App platform in digital video and TV Awards.

In March Ias launched view ability and invalid traffic verification for Netflix AD supported plan.

<unk> is ensuring that advertising campaigns running on Netflix are delivered fraud free and are seen by real viewers.

Verification on Netflix is now available in 12 markets globally and across all platforms.

We're also excited to announce that public of renewed its exclusive partnership with Samsung to be their primary CTV AD server, helping them to power their AD break decisioning across Samsung TV plus globally.

Our pre bid solutions are now live with Sander invest DSP.

These offerings ensure marketers add stopped playing when the TV screen is off and provide metadata to better understand programmatic CTV spend.

Beyond CTV, we're pleased to announce that mail Metro media. The UK based global news publisher is now using Ias context control as well as our publisher verification optimization products.

<unk> is ensuring that ads running on mail metros digital platforms can be properly seen by audiences, our fraud free and brand safe for advertisers.

Our leading edge technology, along with our energized sales effort is driving increased customer adoption and higher conversion of multiyear multimillion dollar new business opportunities.

On last quarter's call I highlighted several major global brand wins, including Ford Hershey carrying NPL. We are winning these deals after extensive head to head product and tech to diligence. We're also focused on activating these wins faster which is reflected in.

In our first quarter results.

Most recently camber had selected Ias based on our actionable attention data ability to drive greater efficiencies across programmatic buying and enhanced CTV offerings as canvas shifts more budgets to this space.

In addition, we won several new accounts outside the U S. In Europe <unk> selected Ias based on our differentiated product innovation.

In APAC, we are delighted to welcome Singapore Airlines and Panasonic, our global presence stands as a key differentiator for Ias as marketers consolidate their buying decision around one provider across geographies in the first quarter, we accelerated revenue growth with double digit.

<unk> in the Americas, EMEA and APAC.

Expanding on our existing relationship with Amazon, We announced recently that I guess is the first verification vendor who suite a publisher optimism.

<unk> are now available via Amazon publisher services or Ats connections marketplace.

By leveraging their existing Aps connection publishers can easily discover and onboard new tech solutions with a streamlined and more efficient adoption and integration process.

In March the MRC granted continued accreditation of Ias This core digital AD verification service.

Since appointing Kevin <unk> as Chief compliance officer, we've intensified our efforts to grow our MRC accreditation.

Kevin is a widely renowned industry authority, who was at Nielsen for 20 years prior to joining Ias.

We look forward to continuing to work closely with the MRC.

Finally, Ias went live with our previously announced partnership with good loop, we are working with <unk> to enable marketers to measure the carbon emissions of their digital ad campaigns.

We're off to a strong start in 2023 with first quarter results ahead of our prior expectations, we are delivering superior products to our customers and we are investing in our technology to support future growth initiatives with data as the foundation.

We have very robust new business pipeline and we are benefiting from our enhanced go to market strategy.

We are excited to host our first analyst and Investor Day on June 13.

We encourage you to join us in person at the NASDAQ market site in New York City.

The event will be a great opportunity to meet and hear from several members of the Ias senior leadership team on our strategy and vision.

We will feature product demos that highlight our robust technology.

We will also host an expert panel to provide insights into ias and the broader digital media industry.

I'd like to thank everyone on today's call for your ongoing support.

I'll now hand, it over to Tania to review our financial results in detail.

Thanks, Lisa and welcome everyone, we exceeded our expectations in the first quarter highlighted by accelerated year over year revenue growth of 19% and adjusted EBITDA margin expansion to 32% as a result of our positive business momentum, we are raising our financial outlook for the full year.

Total revenue in the first quarter increased to $106 $1 million.

Our revenue growth rate of 19% for the period accelerated from the 15% growth rate in the fourth quarter of 2022.

We generated increased market, our demand across our product offerings and social media video and open web with a strong contribution from seasonal campaigns in the period.

In addition, recent new business wins added to our results TPG.

CPG auto and finance verticals performed well in the period.

Programmatic revenue for the first quarter grew 26% year over year to 51.0 million pre.

Primarily attributable to context control <unk>.

Context control referenced on at a similar percentage of programmatic revenue as in the fourth quarter of 2022.

Non contextual programmatic revenue increased at a double digit rate in the first quarter.

Programmatic revenue reached 56% of total revenue from advertisers in the first quarter versus 54% in the prior year period.

We see opportunity for expansion of our context control business beyond the top 100 accounts.

<unk> in the mid market also in the U S and internationally.

We are also further developing other areas within programmatic, including our total visibility offering.

Advertiser direct revenue, which includes social media platforms and open web increased 18% year over year to $40 $7 million.

Social media revenue grew 25% and represented 43% of Advertiser direct revenue in the first quarter up from 42% in the fourth quarter of 2022.

Year over year growth was driven by customer adoption of our postpaid solutions for tech top as well as revenue from our existing partnerships with meta and Youtube, which continue to diversify and scale.

Video, which commands a pricing premium to display grew 25% in the quarter.

Video accounted for 47% of Advertiser direct revenue in the first quarter unchanged from the fourth quarter of 2022.

On a combined basis total revenue from advertisers, including programmatic and advertiser direct revenue represented 86% of total first quarter revenue.

Supply side revenue from publishers increased 2% to $14 $4 million in the period gains.

Gains in <unk> were partially offset by the performance of our non CTV supply side businesses.

Total supply side revenue represented 14% of total first quarter revenue.

Revenue grew in all three regions in the first quarter.

Revenue growth in the Americas accelerated to 23% ahead of 19% growth in the fourth quarter of 2022, driven by gains in context control Pep talk in public.

International revenue growth, excluding the Americas accelerated to 11%.

Pacing growth of 6% in the fourth quarter of 2022 fueled by new business wins adoption of our offerings and investments in emerging markets.

Gross profit margin for the first quarter was 80% compared to 81% in the prior year period.

Gross profit margin performance in the first quarter reflects investment in our data infrastructure and increased hosting costs.

Most profit margin was in line with our prior outlook of 78% to 80%, which we continue to forecast throughout 2023.

We expect to optimize the gross profit margin of our offerings as we scale over time.

Sales and marketing technology, and development and general and administrative expenses combined increased 10% in the first quarter compared to the prior year period.

Our expense growth reflects our streamlined operations, resulting from our recent restructuring efforts.

We continue to prioritize our hiring as we focus on profitable growth.

Higher stock based compensation also drove the year over year increase.

Stock based compensation expense for the period was $11 $3 million in line with our prior expectation of $11 million to $13 million.

Adjusted EBITDA for the first quarter, which excludes stock based compensation and one time items increased 37% year over year to $34 $1 million.

Adjusted EBITDA margin was 32% and exceeded expectations.

Higher than expected revenue for the period as well as increased operating efficiencies contributed to our strong adjusted EBITDA margin in the first quarter.

In addition, long term investments in our technology and improved productivity of our engineering team resulted in increased capitalized expenses, which contributed to margin performance.

Net income for the first quarter with $3 1 million or <unk> <unk> per share.

This marks our fifth consecutive quarter of net income profitability.

Turning to our performance metrics.

First quarter net revenue retention or NRI was 118%, reflecting our ability to grow with our customers.

Total advertising customers with 2100, essentially unchanged from the prior year period.

The total number of large advertising customers with annual revenue over $200000 increased to 204 compared to 184 last year and up sequentially from 199 in the fourth quarter of 2022.

We maintain a healthy balance sheet with strong cash flow conversion that provides us with financial flexibility to invest in the long term growth of the business.

Cash and cash equivalents at the end of the first quarter were $94 4 million.

During the quarter, we reduced our long term debt by $10 million to $215 million, resulting in net debt of $121 million.

We are increasing our revenue and adjusted EBITDA outlook for the full year to reflect our first quarter outperformance and positive business momentum.

For the second quarter ending June 32023, we expect total revenue in the range of $111 million to $113 million or 12% year over year growth at the midpoint of the range.

Adjusted EBITDA for the second quarter is expected in the range of 35% to $37 million.

For the full year of 2023, we now expect total revenue in the range of $457 million to $465 million.

Our 13% year over year growth at the midpoint of the range.

Up from our prior guidance of $453 million to $463 million.

Adjusted EBITDA for 2023 is expected in the range of $147 million to $153 million up from our prior guidance of $141 million to $149 million, which reflects a slight improvement in adjusted EBITDA margin compared to our prior outlook.

Our updated adjusted EBITDA guidance reflects our increased revenue outlook financial discipline, driving organizational efficiencies and an increase in the level of capitalized technology and development expense as a result of investments in our technology platform.

We are reinvesting some of these benefits into strategic initiatives to support our long term growth.

A few additional points.

We expect second quarter year over year revenue growth of 12% at the midpoint.

Paired to higher Q1 growth, which benefited from seasonal campaigns as discussed.

Advertiser direct revenue in the second quarter is expected to benefit from the ongoing ramp in adoption of our leading social media products as well as demand for our open web products from new Advertiser customers.

Balancing this programmatic revenue growth in the second quarter is expected to reflect moderating context controlled growth as the business increases scale.

As mentioned, we expect gross profit margin in the range of <unk>, 78% to 80% throughout the year.

Second quarter stock based compensation expense is expected in the range of 15, 5% to $17 $5 million.

Full year stock based compensation expense is expected in the range of 61% to $64 million.

Our than our previous guidance of $62 million to $66 million.

We expect weighted average shares outstanding for the second quarter in the range of 155 to 156 million shares.

And 155 to 157 million shares for the full year.

To conclude we are pleased with our first quarter performance, which sets the stage for profitable growth in 2023.

We are generating positive business momentum highlighted by major wins that are already contributing to our results.

We are excited to advance our partnerships with the major platforms, which expand our addressable market opportunities and we are realizing operating efficiencies while reinvesting in the business for long term sustainable growth to benefit our customers and shareholders.

Lisa and I are now ready to take your questions.

Operator.

Thank you at this time, we will conduct a question and answer session. As a reminder to ask a question you will need to press star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, please standby, while we compile the <unk>.

Q&A roster.

Our first question is from James <unk> with Jefferies. Your line is now open.

Thanks for taking my questions I have.

Tonya just looking at your Q2 guide it implies a bit of a softer sequential growth compared to prior second quarters is there anything driving that just anything on the macro and then one for Lisa could you just talk about the opportunity to expand context control to mid market accounts, we heard Tony mentioned on the call. So.

Just be great to hear about the traction that youre seeing there. Thank you.

Sure Hey, Jay.

We're very pleased with our first quarter results driven by stronger than expected revenue from seasonal campaigns.

And so we are and so we're expecting some deceleration.

The higher than expected seasonal campaigns in Q1.

And this trend is consistent with our prior expectation of higher Q1 growth versus the full year.

And in the second quarter. Our guidance reflects we are pleased to continue to guide double digit revenue growth as you mentioned, 12% and strong profitability in the second quarter based on strong continued demand for our products.

Sure happy to take the second question about expanding context controlled to mid market. We are seeing a nice uptick with mid market adoption of context control contextual avoidance in particular.

<unk> in the U S and EMEA, we're also starting to see nice uptick for context control in international mid market in particular.

We define mid market north of top 100 accounts and where we're really getting traction is with the independent agencies outside of the top six whole codes.

Thanks.

Okay.

Thank you.

Thank you please standby.

Next.

Question.

Our next question comes from Matt cost with Morgan Stanley . Your line is now open.

Hi, everybody. Thanks for taking the question I guess just on the Amazon publisher services partnership I think it was mentioned in the release how needle moving do you think this can be for your go to market and how long will it take you to assess whether youre seeing more onboarding through that channel.

Great question, Matt, Yes, we were thrilled to announce that IHS was the first verification vendor.

Whose suite of publisher optimization solutions are now available on Aps.

It enables publishers to easily discover and onboard new tech solutions in terms of Onboarding and timing I would say the back half of this year will be a steady onboarding steady ramp.

Then we expect solar adoption in 2024.

Great. Thank you.

Thank you.

Please standby for our next question.

Our next question comes from Jason <unk> with Oppenheimer.

Your line is now open.

Kind of a two part question around connected TV.

So first just on the Samsung partnership.

Primary benefit is the main benefit to them choosing us to be their primary AD server that you can tell if the TV actually on.

Versus alternative ways to do basically measure.

Do what you do with connected television and then.

Just talk about I guess, we're kind of going to get to that point, maybe a few more quarters, where the growth of kind of public on CTV should offset some of the decline on the legacy supply side. So just kind of talk broadly how.

That product and you ultimately see connected TV kind of growing the supply side line of the model. Thank you.

Sure.

Thanks for the questions Jason So, yes, we were thrilled.

We renewed our exclusive partnership with Samsung as their primary CTV AD server.

To address your question about <unk> off I mean, we have such an extensive strategic partnership with Samsung.

In addition to serving their ads, we're doing lots of other things to help Samsung better optimize and drive higher <unk>.

Yields for their CTV ad.

AD inventory and then in terms of our publisher revenue, we continue to see impressive growth from public it represents a little more than half of our publisher business and the public of growth. It was partially offset by our traditional non CTV publisher offer.

During so we're feeling really bullish about.

The future of CTV, we are winning in CTV everywhere and publica, absolutely is accelerating our growth with CTV and we're just seeing such great demand both from publishers and advertisers.

Thank you.

Okay.

Okay.

Please standby for our next question.

Our next question comes from Brian Fitzgerald with Wells Fargo. Your line is now open.

Thanks, Chris you had really nice acceleration in the advertiser direct segment this quarter.

<unk> really notable uptick in the impression growth to 29%.

Called out client growth in 10-Q, but I'm wondering if you could also talk through the impact from emerging channels, there and maybe also.

What you saw from the overall volume dynamics of the market right now.

Sure happy to take that fit so we were very pleased with the uptick in advertiser direct revenue.

In Q1 that was fueled by the team putting a lot of new wins on the business.

Couple of reasons, why we did see that strong growth with direct the first is just strong performance in social notably tick tock and a few other of the social media platforms.

As well as seasonal campaigns, so think of Q1 seasonal events like cold.

Flu March madness.

And that also generated nice wins with advertising direct.

Got it thanks, Chris.

Yes. Thank you.

Please standby for our next question.

Our next question comes from Mark Kelley with Stifel. Your line is now open.

Okay, great. Thank you very much.

I wanted to get your thoughts on.

This attention partnership with lumen, which is nice to see.

That approach is a little bit different than your main competitor, which doesn't use eye tracking and things like that.

I guess what are the puts and takes between you.

Your methodology and some of the other ones that are out in the market.

And then second some of the categories that you called out is a bit stronger for you like autos and financials were weaker for some other folks in digital advertising curious if that's a read through.

Newer wins that maybe you didn't have last year. Thank you.

Great.

Thanks, Mark So happy to talk about attention and yes, we were thrilled to announce our partnership earlier this week with UK based <unk> research.

It sounds like you read about it lumen is a global attention company that specializes in eye tracking and the beauty of the partnership.

Is we're combining our attention technology with Lumens eye tracking capability and what's great is it's what marketers are asking for that they want that combination of our attention data with lumens focused data on eye tracking and what were <unk>.

Finding the results so far they look really strong that in view adds there amounting to 64 times higher attention. Then those were not in view I don't really want to speak to our competitors offerings. Because we are just so focused on innovating on behalf of our advertisers, but again we're three.

About the partnership and we're thrilled to offer a differentiated attention solution to our customer base.

In terms of the vertical as Tania you wanted to make sure yes, smart in terms of auto and finance.

We were really pleased to see the strong results in those two verticals I would say, there's a couple of things underlying that and fits called this out earlier, we were really pleased on the direct side to see 29% volume increases in Q1 and that was a combination of a few things.

One.

The.

Volume from social media number two our new wins are already starting to have an impact that we saw in Q1.

And thirdly, particularly on the finance side some of the advertisers on the finance side were more seasonally driven in terms of Q1, but we were across the board with the areas I just highlighted we're really pleased with the strong growth on the <unk> side.

Really helpful. Thank you both.

Please standby for our next question.

Our next question comes from Andrew Merck with Raymond James Your line is now open.

Great. Thanks for taking my questions.

One more on Aps, if I could I guess can you talk a little bit more about that partnership I guess kind of what brought that about and what kind of walled garden or platform partnerships can that open up as like a demonstration of capabilities are a proof of concept and then second on attention you you mentioned in the answer to the last question.

That you have marketers that are kind of clamoring for this type of attention data are there any commonalities in the types of advertisers or clients that youre working with right now we're kind of seeking out that attention data maybe more than others. Thank you.

Sure.

So happy to answer the first question around Aps. So the way to think about the Aps integration and announcements I mean, we have a deep strategic partnership with Amazon across multiple businesses of Amazon.

In addition to our advertiser base of customers. We also have a deep publisher customer base and this is something that our customers have been our publisher customers have been asking for is just a broader and wider scale and distribution play an opportunity.

To connect into Aps and enabling publishers. So they can easily onboard new tech solutions with a streamlined and more efficient adoption and integration process. So we're really excited to be the first verification vendor to announce our Aps.

Integration and then.

In terms of our investments and attention.

Another thing that we rolled out recently is a white paper all around attention and think of it as a thought leadership piece and we're getting such strong feedback from our advertisers about this white paper and the way we're thinking about the attention model.

It's it's fit into three categories and those categories include visibility situation and interaction and we are able to measure the attention in each of these areas and again combining up our overall attention data and marrying that.

With Lumens eye tracking data the way to think about our attention to it's early days, it's one really important part of outcomes and especially during these macro economic times as advertisers are leaning in to understand ROI efficient.

Fee get closer to the ROI ensure that every dollar that they invest their understanding the ROI investments in things like intention and overall performance and outcomes.

Core part of our strategy at Ias, both this year and.

In future years.

Great. Thank you.

Yes. Thank you.

Please standby for our next question.

Our next question comes from Justin Patterson with Keybanc. Your line is now open.

Great. Thank you very much I wanted to touch a little bit on just the tech investments, you're making for the year I know that's been a big strategic priority for you. How are you just with that transition and starting to see the pace.

Product and feature velocity improve thank you.

Yeah, Great question Jeff.

Justin So in terms of tech investments, we're definitely firing on all cylinders and a good example of that and I know we spoke to it during the earlier call is total media quality and total media quality, we've launched it in the social platforms, both Tic Toc, we and.

Just earlier this week.

With Youtube and the beauty of total media quality as we're offering brand safety and brand suitability and the adoption rate has been phenomenal I will just take the example of tick Tock. We're actually ahead of our product roadmap schedule, we were scheduled to launch in 'twenty Mara.

<unk> in Q2, we are already at 30, new markets will be there over the next few weeks and ultimately with our total media quality.

<unk> supporting 90 languages within these social platforms, we're able to move at that velocity and that scale, both by leveraging our AI and ml technologies, but also tapping into open the AI and that's something you keep hearing about from all the tech.

Companies in their quarterly earnings calls this quarter, it's just the power of AI and we'll make sure that we are leveraging both our deep tech, but also open AI and other open technology. So that we can drive at speed and scale.

If I could add onto that Liza as well.

Justin one thing I'm very pleased to see from a finance perspective is that we are continuing to hire and technology are also.

Driving more productivity across the organization and that's contributing to our profitable growth.

Across the quarter and also on a full year basis.

Thank you.

Please standby for your next question.

Our next question comes from Raimo <unk> with Barclays. Your line is now open.

Perfect. Thank you and congrats from me as well.

First question for Tom here.

If you look at the guidance.

You pushed through the Q1 outperformance on revenue on EBITDA, you did kind of push up pushed up a little bit more and what gives you that extra confidence there and can you talk a little bit maybe about some of the initiatives here.

One follow up.

In terms of specifically on the on profitability right now yeah, Yeah, yeah, Okay. Yeah.

Yes.

Yes. So we were really pleased with Q1 coming in at 32%, which was up from 28% last year.

We saw in the quarter greater than expected productivity efficiencies following the restructuring that we did in December .

And like I said, we are continuing to invest in the business.

But we were really pleased to see that prove out in Q1, which gave us the confidence to up margin at the midpoint of our guide.

Okay perfect.

These are more of a bigger picture question around.

Everyone and software.

Software that takes off.

On the Ethernet side as well I guess, maybe around opening can you just talk a little bit about.

For your industry.

What that means.

Everyone keeps asking for all segments.

How do you think about it for your for your industry and implications for you guys. Thank you.

Yeah, Great question Raimo, So again as I had mentioned before.

Where AI ml based companies Sciences, and the name of integral AD science. So were built off of technology, and just leverage incredibly deep data insights, but in terms of the power of AI and open AI. The way we look at it is leveraging <unk>.

<unk> AI when it is additive to our existing technology and products.

Specs and ensuring that when we do leverage it's the right thing to do for our customers. It is additive from a product functionality and also it helps us with that tick Tock example, that speed to market matters and being able to launch a product like total media quality.

And accelerate the roadmap and accelerate the ability to launch that product and get it to a place where we're over 90 languages available that is incredibly powerful for our advertising customers. It is incredibly powerful for the platforms that we partner with and I see it.

As a win win win across the board. So that's how we're thinking about opening.

Open AI is just leveraging it when its additive to our existing technology.

Okay perfect. Thank you congrats from me as well. Thank you. Thank you.

Yes.

Please standby for the next question.

Our last question comes from Jason <unk> with Craig Hallum. Your line is now open.

Thank you on the tick tock relationship can you just talk more about where you are expanding that and then yesterday they announced a new publisher pulse solution curious if theres a bigger fundamental opportunity for you guys there.

Yeah, Great question so.

With Tic Toc, we're seeing incredible adoption, both with our pre bid and postpaid products you might remember when we initially rolled it out it was just in three markets three languages got it up to seven markets.

Now on path to two.

To hit 30 markets in the back half of this year.

That.

Scale that global scale will be reaching even more markets. We're hearing strong feedback both from global marketing clients, who are adopting tick tock and also local clients in local markets, who are adopting the product and again I can emphasize and.

The importance that we can rollout languages quickly because that will drive up the adoption rate for our global marketers, who won our scalable global solutions to be wherever they are running their advertising and they just want to ensure that where they are running there.

Our ads, it's brand safe and brands suitable so I'm incredibly.

Im proud of our team I'm proud of the fact that we are ahead of our Q2 product roadmap, especially when it comes to tick tock I'm really looking forward to.

Working.

With the other social platforms, and expanding our Tam Q or when the social platforms open up their life fees.

One follow up on context control, we've heard some pushback from publishers that there is a conflict of interest is contextual data is used for targeting a resold to advertisers I'm just curious from your perspective, how you manage that relationships between the advertisers and the publishers with that contextual data.

Yeah, Great question, Jason So.

That was actually something that I remember was an issue.

We've had context control for three years now so in the early days of context control I would hear some feedback from the publishers.

That they perceived it potentially is a conflict of interest but the reality of it is is the publishers are our customers too and we see we play a critical role with the publisher ecosystem to help publishers optimize their inventory drive higher yield for their inventory.

So that they're publishing sites are sticky so it's something that we don't really hear much from publishers.

Recently about conflict of interest with context control.

Perfect. Thank you.

Thank you.

At this time I would now like to turn it back to Liza is Schneider CEO for closing remarks.

Thanks, everyone for joining us on today's call we're off to a great start in 2023 with positive business momentum heading into the second quarter, we are driving growth across our product portfolio with advanced technology and actionable data insights for our customers. We're also excited to see our new business wins.

Contributing to our performance, we will look forward to seeing you at our analyst and Investor Day on June 13 in New York City. Thank you.

Yeah.

Thank you for your participation in today's conference. This does conclude the program you may now disconnect.

Okay.

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